P&I CLUB

PROTECTION & INDEMNITY

UNDERSTANDING
P&I CLUBS
A Presentation by
Adrianus Yuda T
Purpose of our presentation:

1. Briefly explain what P&I Insurance is?

2. P&I Club History
3. Describe the cover we provide
4. P&I Clubs Product
5. Document that should we provide if there any claims
6. Practice.
Hull and Machinery Insurance – covers the hardware
Cargo Insurance – covers
the cargo only
PROTECTION AND INDEMNITY INSURANCE

• When you conduct a service for reward or third parties use your
facilities, you have an exposure to claims should something go
wrong.

• You can purchase insurance to cover these liabilities, namely P&I

Insurance

• These three marine insurances, H&M, Cargo and P&I are linked and
give the interests in a marine adventure the insurance cover they
need.
 CLUB P&I INSURANCE COVER

• The insurance covers the members’ legal liabilities to third

parties

• What legal liabilities?

P&I Clubs – A History
 18th Century Great Britain, formation of Clubs to provide Hull insurance
at reasonable cost.
 As the 19th Century progressed, greater exposure to 3rd Party liability
claims, in particular from their crews. Laws were passed which made it
even easier for crews and their dependents to claim.
 Shipowners were faced with claims from 3rd parties with those ships
they had been in collision.
 H&M Insurers acted quickly to address this gap but only provided 3/4th
of the damage.
 Original limitation was to the value of the ship itself, but this began to be
exceeded, leaving shipowners to find the excess.
Club P&I Insurance cover
 Risks covered by a P&I Club

 Personal injury / illness / death

 Collision
 Wreck Removal
 Damage to fixed and floating objects
 Pollution
 Cargo Damage and shortage
 Stowaways
Injury?
Accident waiting to happen?
 Personal injury/illness/death

 Liability for injury, illness or death

 Crew Repatriation

 Crew substitute expenses

 Loss of crew effects

 Personal injury: crew liabilities

 Medical costs
 Repatriation expenses
 Sick wages
 Deviation/substitution expenses
 Contractual entitlement
 Compensation
 Collision

• No cover of the member’s ship damage

• 1/4th of damage to other ship
• or 4/4th with additional premium
• Some consequential liabilities e.g., pollution, personal injury
Wreck removal
 Wreck removal
 Costs incidental to the raising, removal, destruction, lighting or marking
of an entered ship \

 Liabilities incurred by a member as a result of the raising, removal or

destruction of the wreck of an entered ship

 Liabilities incurred because of the presence or involuntary shifting of the

wreck of an entered ship

 Liabilities incurred (including costs/expenses) incidental to the disposing

of cargo
Damage to fixed & floating objects

Physical damage caused:

 docks
 fixed or floating objects
 fishing nets
 coral reefs
Coral damage: Restoration costs
Pollution

Typical claims arising out of

pollution :
 Liability for loss, damage

or contamination
 Clean up costs

 Preventive measures

 Costs of complying with

Government directions
 Salvor ’s compensation

for pollution prevention

Pollution: clean up costs
 Cargo damage and shortage

 The cargo itself is not insured, but the Club covers the
member for liabilities to cargo owners.
 Cover for liabilities arising out of loss or damage to cargo
 Cover for disposal costs of damaged cargo
 Cover for third party bunkers e.g. charterer ’s
 Cover for cargo’s proportion of GA
Heavy weather: wet damage/loss
Finished steel products
 Stowaways
 Covers costs of
repatriation
 Additional costs
for security
 Pre and post
departure stowaway
checks
 Costs of
accommodating
stowaway
 Costs of emergency
documentation
 Practice
1. Dalam proses claims crew liability jenis penyakit apa yang tidak dapat
di cover oleh P&I ?
2. Untuk proses claims crew liability jika ada kejadian terhadap pihak luar
di luar crew kapal itu sendiri apakah dapat di cover oleh P&I ?
3. Dokumen apa saja yang perlu disiapkan jika terjadi claims untuk case
Collution / Tabrakan kapal ?
4. Jika pemilik kapal memiliki Polis Marine Hull dengan cover ¾ untuk
collution liabillity dan tuntutan ganti rugi melibihi dari TSI / nilai
pertanggungan, sedangkan di P&I hanya mengcover Excess. Mohon
dapat dijelaskan apa pengertian dalam Excess di dalam Polis P&I /
Certificate of Insurance?